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#1709503 - 06/12/12 08:05 PM Rapid Rescore request from customer
Nanee Offline
New Poster
Joined: Jan 2004
Posts: 12
We have a customer who has applied for a mortgage loan product. Their credit scores prevent them from qualifying for the particular product they applied for. They have the potential of increasing their credit scores if they pay down a portion of the credit card balances. We have the capability with our credit report provider to do a rapid rescore. If the customer requests the rapid rescore and their scores do not increase enough to qualify for the loan and we deny the loan, can we collect the "rapid rescore fee" from our customer?

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Lending Compliance
#1710457 - 06/14/12 05:07 PM Re: Rapid Rescore request from customer Nanee
KatieL Offline
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KatieL
Joined: Dec 2010
Posts: 177
Midwest
Take a look at your contract with your credit vendor. From my previous life I believe I looked into this and our contract prohibited charging a consumer for a Rapid Rescore Fee.
At my current employer we have this avaialble to us presently and we don't charge a fee.
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#1784483 - 02/08/13 11:30 PM Re: Rapid Rescore request from customer Nanee
kona16 Offline
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Joined: May 2012
Posts: 19
WA
Just wanted to add that the FTC's CROA (Credit Repair Organizations Act)is the regulation that prohibits uprfont payment of the "credit repair" service until after it has been completed. There are other prohibited practices, however, this is for credit repair agencies. Creditors and depository institutions are exempt from CROA. There is verbiage that says that a creditor is exempt "to the extent the creditor is assisting the consumer to restructure any debt owed by the consumer to the creditor".

I would agree with Profit Defender that the prohibition of the rapid rescore fee is based on the credit vendor contract.

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